Unemployed last year? Buying health insurance this year? You may benefit from favorable new changes
Many people lost their jobs last year due to pandemic shutdowns. Generally, unemployment compensation is included in gross income for federal tax purposes. But thanks to the American Rescue Plan Act (ARPA), enacted on March 11, 2021, up to $10,200 of unemployment compensation can be excluded from federal gross income on 2020 federal returns for taxpayers with an adjusted gross income (AGI) under $150,000. In the case of a joint return, the first $10,200 per spouse isn’t included in gross income, meaning if both spouses lost their jobs and collected unemployment last year, they’re eligible for up to a $20,400 exclusion. Contact us if you have questions about your situation.
Know the ins and outs of “reasonable compensation” for a corporate business owner
Corporate business owners know that it’s generally better to take money out of a C corporation as compensation rather than as dividends. That’s because a corporation can deduct the salaries and bonuses that it pays, but not dividends. Thus, if funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is only taxed once to the employee receiving it. But there are limits to how much money you can take out this way. Compensation can be deducted only to the extent that it’s reasonable. Unreasonable portions aren’t deductible and may be deemed dividends. Need help determining a reasonable salary? Contact us.
Changes to premium tax credit could increase penalty risk for some businesses
The American Rescue Plan Act made several significant enhancements to the premium tax credit (PTC). The PTC is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). The expanded PTC will help eligible individuals and families obtain health care coverage. However, because applicable large employers (ALEs) could face shared-responsibility penalties if full-time employees receive PTCs, expanded eligibility could increase penalty exposure for ALEs that don’t offer affordable, minimum-value coverage to full-time employees. Contact us for help determining whether your business is at risk.
Home sales: How to determine your “basis”
The housing market in many parts of the country is strong this spring. If you’re buying or selling a home, you should know how to determine your “basis.” How it works You can claim an itemized deduction on your tax return for real estate taxes and home mortgage interest. Most other home ownership costs can’t […]
Simple retirement savings options for your small business
Are you thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the administrative burdens involved in providing a traditional pension plan? Two relatively easy options are a SEP or a SIMPLE plan. When you set up a SEP for yourself and your employees, you’ll make deductible contributions to each employee’s SEP-IRA. The maximum amount of deductible contributions that you can make to an employee’s SEP-IRA, and that he or she can exclude from income, is the lesser of 25% of compensation and $58,000 for 2021. For 2021, SIMPLE deferrals are up to $13,500 plus an additional $3,000 catch-up contributions for employees age 50 and older.
5 Leasing and Maintenance Services to Streamline Property Management
Leasing a unit can be cumbersome, often entailing many tedious steps from start to signing. The same can occur with maintenance requests, in response to which residents have come to expect on-demand service. The following new and noteworthy software platforms, dashboards, and mobile apps are designed to give residents instant and seamless communication with community […]
Property Investment Strategies To Consider In 2021
As 2021 kicks off, there are still various unknowns going on in the world. You might be wondering what rental investing, and specifically your rental investing strategy, is going to look like this year. Since last year took many unexpected turns, it can be frustrating to reflect on all of the things you were unable […]
Using Technology to Create a Contactless Self-Storage Customer Experience
In the wake of the coronavirus pandemic, self-storage operators have been forced to rethink their business strategies. Technology, which was already becoming a core industry asset and market differentiator, is rapidly becoming an essential component of any resilient business. It’s more important than ever for facility operators to ensure they’re providing a safe, sustainable experience […]
Analytics Cut Maintenance Costs
The cost associated with unplanned downtime is a problem faced by companies across multiple sectors. According to market-data specialist Statista, New York, NY (statista.com), in 2020, 25% of respondents globally reported the average hourly downtime cost of their servers was between $301,000 and $400,000. This is a large price to pay for inefficiency, especially when there […]
2021 Manufacturing Industry Trends: The Future is Here with Industry 5.0
We all agree, 2020 was unlike any other year in recent history, with US manufacturing feeling the impact. The pandemic forced shutdowns, supply chain shortages and in many cases decreased demand due to economic uncertainty. But the pandemic has also increased collaboration between humans and smart systems and sped up the move from Industry 4.0 […]
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